Foundry Group Announces Closure And No Further Fundraising Plans


Foundry Group, a well-established venture firm with a significant $3.5 billion in assets under management, has made the surprising decision to shut down its operations and cease raising additional funds. This unexpected move comes shortly after the firm’s announcement of a $500 million fund in the previous year.

Key Takeaway

Foundry Group, a prominent venture firm, has decided to cease raising funds and will be closing its operations, impacting its portfolio companies and the broader venture capital landscape.

Background and Decision

Based in Boulder, Colorado, Foundry Group revealed on January 19 that its current fund would be its final one. The firm, which has been actively investing since 2007, had introduced its eighth fund, Foundry 2022, with a value of $500 million in May of 2023. Over the years, Foundry has provided support to over 200 companies and nearly 50 venture firms, including notable names such as Fitbit, Zynga, and AvidXchange.

Implications for Portfolio Companies

With the decision to cease fundraising, questions arise concerning the impact on the firm’s portfolio companies. While Foundry intends to continue investing from its latest fund, the uncertainty surrounding a firm winding down may pose challenges for founders seeking follow-on funding.

Future Plans and Commitment

Despite the closure, Foundry still has a substantial portion of its fund remaining to invest. Co-founder and partner Seth Levine has emphasized the firm’s commitment to leading Series A and B financings from the existing fund. He also expressed confidence that all funds would be deployed by approximately 2026, with ongoing support for the portfolio companies beyond that timeframe.

Levine, along with co-founder Brad Feld and partner Chris Moody, has affirmed their dedication to seeing through the firm’s remaining work. However, the future plans of other partners remain uncertain.

Industry Trends

Foundry’s decision to cease operations is not an isolated case, as other venture firms, such as Boston-based OpenView, have also unexpectedly halted their investment activities. These developments reflect the evolving landscape of the venture capital industry.

It’s important to note that there have been no departures at Foundry Group as a result of this decision, according to Levine.

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